Nation to strengthen regulatory framework

Strengthening the regulatory framework will remain a key focus for China's banking sector this year, according to economists and analysts, who believe more specific rules will be introduced to place greater emphasis on enforcement.

"We expect more specific regulations to be introduced this year to either fix loopholes in the existing rules or lay out the regulatory framework for areas currently not covered, and focusing on shadow banking, credit allocation, corporate governance, consumer protection, corruption, proper disclosure and other factors," wrote Wang Tao, chief China economist at UBS Securities, in a recent report.

Since November, the China Banking Regulatory Commission has issued a number of directives to reduce financial sector leverage, address noncompliant practices and improve liquidity and risk management.